Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
Yuan goes down
On Monday, the Chinese Yuan headed south, while the evergreen buck rallied because US-China relations worsened over the weekend.
The currency pair USD/CNY ascended by 0.1% being worth 6.9445.
Leaders of the Asia-Pacific Economic Cooperation didn’t manage to agree on a communiqué.
China and America failed to agree on whether the reform of the World Trade Organization needs to be in the leaders’ declaration.
American leader Donald Trump didn’t join the gathering as Vice President Mike Pence was present at the event instead of him.
Estimating the US currency’s purchasing power versus its primary rivals the USD index managed to rally by up to 0.1% ending up with 96.5.
On Friday, the Fed’s newly appointed vice chair, Richard Clarida expressed caution over the global surge outlook and told it’s something that will be relevant for the outlook for the American economy.
What’s more, in a separate interview with Fox Business, Federal Reserve Bank of Dallas President Robert Kaplan revealed that he expected a surge deceleration in China and the European bloc.
Besides this, the currency pair USD/JPY stood still coming up with an outcome of 112.75. As Japan’s Ministry of Finance disclosed, in October, the country’s exports managed to soar by 8.2% from the same period of 2017, in contrast with the anticipated 9% surge.
Additionally, the previous week official data disclosed that the Japanese economy went down more than foreseen in the third quarter because of natural catastrophes as well as diving exports.
The currency pairs AUD/USD and NZD/USD decreased by respectively 0.3% and 0.5%.
As for the UK pound, it obtained some residual focus having been under heavy selling the previous week against the backdrop of uncertainties over British Prime Minister Theresa May’s draft Brexit plan.
The currency pair GBP/USD hit 1.2824, decreasing by nearly 0.1%.
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
Reserve Bank of New Zealand (RBNZ) will reveal Official Cash Rate and make a statement about monetary policy on October 6, 04:00 GMT+3.
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